Memecoins in purgatory: how the market has fallen to 2022 levels

The meme coin sector is in a deteriorated state. At the beginning of 2026, meme coin dominance on the altcoin market dropped to 0.04, effectively returning to the levels seen at the end of 2022. This dramatic degradation occurred after a peak at the end of 2024, when the market capitalization of this segment exceeded $100–120 billion, attracting a wave of speculators and retail investors.

Structural Collapse Instead of a Normal Correction

CryptoQuant and CoinGecko specialists note that the situation has gone beyond normal market fluctuations. Unlike previous cycles, where weakness in one segment triggered capital transfer to another trendy theme, today all categories of meme coins are experiencing a synchronized decline simultaneously.

Tokens with dog symbols, including DOGE with a current market cap of $23.44B, SHIB, and WIF ( now $384.29M), have retraced to mid-2023 levels. Solana-oriented memes, frog tokens, AI-themed coins—all show the same alarming dynamics. Liquidity indicators scream about a critical reduction, especially for high-beta instruments, which suffer first during risk reassessment.

Liquidity Has Vanished

The problem is not just falling prices. Analysts point to a deeper structural collapse: complete depletion of liquidity and the absence of new narratives to attract hype spreaders. CoinGecko data analytics show declining trading volumes and the strengthening of the so-called “black hole effect,” where capital leaves the sector irreversibly.

CryptoQuant CEO Ki Young Ju does not mince words, stating directly: meme markets have lost their appeal. Sentiment indicators show a complete exit of positions, and rotation models that dominated previous cycles have stopped working.

A Long Winter Instead of a Short Pause

Experts distinguish the current state from simple correction phases of previous years. Historical pullbacks were pauses before energetic rallies and major rotations. Now, with liquidity flowing out massively and synchronized declines covering the entire sector, the prospect of a quick recovery seems unlikely. It will require either a significant influx of new capital or a return of retail speculators—a scenario that appears improbable in the near future.

The collapse of meme coin dominance to multi-year lows signals a shift from a short correction to a prolonged stabilization period. CryptoQuant and CoinGecko data unequivocally confirm: speculative appetite for meme coins has been exhausted, leaving the decline of these assets as a symptom of a broader risk reassessment among retail investors. Capital flows are redirected to other segments of the crypto market, leaving meme coins in purgatory without prospects for quick liberation.